The Bitcoin cryptocurrency and gold in recent times have been caught in the rope of volatility, which has offered them the opportunity to form fresh support levels and will continue to do so in the years to come. The support level has been said to be essential for the increasing value of the Bitcoin cryptocurrency.
While the Bitcoin cryptocurrency is still stable, it is still in a firm bull market. Analysts over time are of the opinion that gold and other assets which have most of the times been compared to Bitcoin and other cryptocurrencies have all experienced a downward pressure. The question now is, the poor performance of gold is it good for the stability and growth of Bitcoin? This question has proven to be a hard one for some of the cryptoanalysts who feel that there is no correlation between the price of Bitcoin and gold (as well as other assets).
Bitcoin Experiences Increase In Value Despite Its Subsequent Fall In Price
Currently, Bitcoin is trading at exactly $11,500, which is an increase of about 2% from $10,900 as of the early hours of today. The past week has seen the Bitcoin cryptocurrency experience current levels of support as it seeks to get close to the $12,000 mark, which is likely to come.
If the Bitcoin cryptocurrency continues to experience this unprecedented increase in price in the weeks to come to, there’s every possibility that more pressure would be mounted on this cryptocurrency. While speaking to newsmen, Josh Rager, a popular Twitter analyst, is of the opinion that he sees the coin leaning bullish. He went further to reveal that he sees Bitcoin retest local highs if it is capable of holding its current support.
As Global Economy Stabilizes Gold Plummets Lower
In recent times, a number of people have either referred to Bitcoin as “gold 2.0” or “digital gold.” The current data in the US, as well as the growing global economy, have sent the price of gold drop down to $1,399 from what it was prior to this time.
The recent fall in price is coming on the heels of an anticipated job data reveals that the bulk of the price of gold’s action is in correlation with the data that regards the US and the global economy.
While a number of investors see Bitcoin as a safe haven investment class, the recent increase in price as well as the current bullishness is a clear signal that the price action is not in correlation with the current state of the global economy with the hopes that it is moving Independently in the years to come.
Most of the analysts are of the opinion that the drop in the value of gold is in correlation with the price of Bitcoin. This has raised the interest of most of the analyst as they feel that the current value of this cryptocurrency is in correlation with the decrease of the value of gold.
photo source: © shutterstock.com by grejak
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